Accelerating economic development to improve people's living standards was of utmost importance, Premier of the Democratic People's Republic of Korea (DPRK) Choe Yong Rim said on Wednesday.

At a national meeting to commemorate the 62nd anniversary of the founding of the DPRK, Choe said the army and people should vigorously develop light industry and agriculture, and fight to promote the production of metal, electricity, coal and railway transport.

Choe said the Korean Peninsula was still in a tense situation that could erupt at any moment because of the confrontationist policy and military provocation of the United States and South Korea.

He said the DPRK would like to improve north-south relations under the "June 15 Joint Declaration," adding that his country would "beat back with all its power, including nuclear deterrent" the United States and South Korea, if they persisted in igniting war on the peninsula.

Choe also said the two recent visits by top leader Kim Jong Il to China contributed greatly to the peace and stability in northeast Asia and the world, and significantly encouraged the people of the DPRK to construct a great, prosperous and powerful nation.